Agenda and minutes

To confirm and sign the minutes of the meeting of 15 October 2018.

The minutes of the meeting of 15 October 2018 were confirmed and signed, subject to the following comments;

·         Councillor Boden said in reference to minute OSC22/18, members had agreed that they did not want to commit a significant resource to benchmarking research.

·         Councillor Booth said in reference to minute OSC22/18, he had stated that unless comparisons are made with like-for-like local authorities, the statistics will not be useful to the Council.

·         Councillor Boden thanked officers for circulating information on the Contact Centre as requested in minute OSC22/18; he asked if further information could be provided in relation to the Contact Centre’s call statistics. Councillor Mrs Hay agreed to provide members with this information.

Members to receive a presentation from Paul Corney, Head of Anglia Revenues Partnership.

Councillor Boden explained that Paul Corney, Head of Anglia Revenues Partnership (ARP) had been unable to attend today’s meeting and introduced Stuart Philpot, Strategic Support Manager for ARP.

Members considered the Annual Review of ARP presented by Stuart Philpot.

The presentation included information regarding ARP’s collection of Business Rates and Council Tax for 2017/18 and the new ARP Enforcement team. Stuart Philpot explained that for consistency purposes, members of staff work on one set of data across all seven partners of ARP. He highlighted that the collection of Council Tax had exceeded target however the collection of Business Rates had fallen slightly short of target. He explained that this is due to valuation figures in 2010 and the large sum of refunds paid due to this. He highlighted that in relation to the processing speeds of Benefits, this has been improved by staff vacancies being filled but can be heavily affected by the annual billing period.

Stuart Philpot said that ARP are very proud of the Enforcement Team and their achievements since their formation in 2015. He told members that over £12.5 million attributed to ARP Enforcement had been generated for partners, with almost £3 million being generated this year. Additional enforcement work is being undertaken by ARP on behalf of South Norfolk Council and Norwich City Council.

Stuart Philpot provided information in relation to the Fraud and Compliance team at ARP. He explained that following the withdrawal of funding by the Department of Work and Pensions (DWP), ARP’s Fraud and Compliance team had identified over £380,000 worth of fraud. He explained the associated costs to the Council for being a partner of ARP and highlighted the savings the Council have made by joining the partnership.

Stuart Philpot informed members that a number of developmental initiatives are being undertaken by ARP that will positively impact both staff and members of the public, including investment into automation and robotics. He thanked members and invited them to ask questions.

Councillor Boden thanked Stuart Philpot for his presentation.

Members asked questions, made comments and received responses as follows;

1.    Councillor Boden said ARP had previously considered creating a Trading Company and asked for an update on this. Stuart Philpot explained that the ARP Joint Committee had decided to put this project on hold and focus on the Enforcement side of the business instead. He highlighted that discussions had taken place and it had been decided by the Joint Committee that the Partnership was at its optimum level with seven partners, as expansion would result in savings being reduced across all partners.

2.    Councillor Owen asked that in future these figures are provided to members prior to the meeting to allow them sufficient time to consider.

3.    Councillor Boden asked what ARP’s target was for Council Tax collection as the figures provided show that ARP have exceed this by over 1%. He highlighted that their target must be significantly below the Council’s budgeted figure. Stuart Philpot said this figure is calculated based on  ...  view the full minutes text for item OSC26/18

To advise the Committee of the progress of the 2018 annual review and the resultant proposals for the Council Tax Support (CTS) scheme to take effect from 1 April 2019.

Members considered the Council Tax Support Scheme report, presented by Councillor Mrs Hay.

Councillor Mrs Hay explained that the Council Tax Support Scheme was included in the original Comprehensive Spending Review (CSR) discussions but members did not wish for it to be included in CSR therefore it has remained at 14% on the basis that members did not want to consider amending it. She said it would be beneficial for the Overview and Scrutiny Panel to consider this report earlier in next year’s work programme to allow time for consultation if members chose to amend the Scheme.

Members asked questions, made comments and received responses as follows;

1.    Councillor Boden agreed that the Council Tax Support Scheme should be scheduled to be considered by Overview and Scrutiny earlier in the work programme as it is too late to consider any amendments and undertake a public consultation.

2.    Councillor Boden asked that at next year’s meeting, rationale is provided to members for keeping the figure specifically at 14%.

3.    Councillor Owen said in order to determine the correct percentage to set the Council Tax Support Scheme members must consider the effect of varying percentages.

4.    Councillor Boden said whilst it was too late to reconsider the figure this year, members need to see the calculation used at next year’s meeting.

5.    Councillor Booth highlighted that the figure of 14% is used in the Council’s Mid Term Financial Strategy so any future changes will need to be reflected in this.

Councillor Boden thanked Councillor Mrs Hay for her presentation.

It was agreed by the Corporate Governance Committee, following their meeting on 20 November 2018, that the Chairman write to the Chairman of the Overview and Scrutiny Committee in relation to the apparent financial deficit outlined in the Statement of Accounts in relation to the trading operations of the Markets; Port as well as the Light Industrial Units and Business Centres.

Councillor Boden explained that following the Corporate Governance Committee meeting on 20 November 2018, it was agreed that the Chairman of Corporate Governance Committee write to the Chairman of Overview and Scrutiny Committee in relation to the apparent financial deficit outlined in the Statement of Accounts in the following areas; Markets, Ports, Light Industrial Areas and Business Centres.

Members asked questions, made comments and received responses as follows;

1.    Councillor Booth explained that as a member of Corporate Governance Committee he had been present at the recent meeting. He explained that members had had to make difficult decisions during CSR about certain services and the committee felt that effectively, these highlighted areas are loss-making and the true cost of these are not being reflected when the Council set their Fees and Charges. He highlighted that whilst the Council is not a business, it must operate in a business-like way to ensure the tax payer is getting the best value for money.

2.    Councillor Boden thanked officers for the breakdown they had provided in relation to these trading areas. He said the accounts produced show depreciation as a cost however these are removed during the processing of accounts. He said if we consider these areas from a commercial viewpoint it is relevant to use these accounting adjustments as the Council can then compare them on a like-for-like basis to a privately run operation.

3.    Kamal Mehta explained that in Local Authority accounting, non-cash adjustments are reversed out as regulatory framework states that these adjustments cannot impact the tax payer’s bottom line. In commercial accounting this would be shown in a profit and loss account. He asked members to consider whether they wanted these trading functions to operate on a commercial profit and loss basis or for a wider purpose as a Local Authority function.

4.    Councillor Booth said the Council must consider how accounts are produced and how we run these functions commercially. He highlighted that in relation to Business Centres, members must consider the additional income they generate and how they can be used to benefit the District in the future.

5.    Councillor Boden proposed that this report should be considered by members of the Economic Development Review Group as all of these functions relate to Economic Development.

6.    Councillor Boden asked for evidence that the business centres are being utilised as incubator units and therefore as their intended purpose and whether the Council have a waiting list of prospective tenants for these. Councillor Buckton confirmed that it is a balance of supply and demand and in general, there is no waiting list. Due to this, there is not the appetite for the Council to encourage people to move on to larger secondary accommodation.

7.    Councillor Owen asked for clarification that the Council does not have a waiting list or is it that the case that nobody is waiting for a vacancy at these units. Councillor Buckton confirmed that there are no companies currently waiting for premises however if there  ...  view the full minutes text for item OSC28/18

To provide the Committee with a progress update setting out the achievement of savings required as per the Medium Term Financial Plan to 2021/22.

Members considered the Progress Update on the Fenland Comprehensive Spending Review (CSR) report.

Members asked questions, made comments and received responses as follows;

1.    Councillor Boden said members had requested a report on the achievements of CSR1 and the prospects of CSR2. He said whilst the report discusses at length the success of CSR1, it was disappointing not to see any mention of transformation required in relation to CSR2 in the report. He explained that the savings derived from CSR1 were mainly transactional and therefore a more transformational approach needs to be considered as part of CSR2.

2.    Councillor Seaton stated that during the period of austerity, the Council has undergone a significant process of transformation in terms of how it operates as an organisation and delivers its services. On two separate occasions the Council has received national recognition showing it to be one of the most efficiently run Council’s in the country for the work it has undertaken to achieve savings and transform the organisation in a way that has largely protected important frontline services to residents. He said it is accepted that a number of the savings and income generated from the member led CSR1 decisions are transactional in nature. The terms of CSR2 are yet to be agreed by members, although it is likely there will be a range of both transformational and transactional options available in ensuring the Council achieves a sustainable balanced budget whilst seeking to maintain quality services to local people. He confirmed that officers will produce saving options for CSR2 to members at Full Council in May 2019.

3.    Councillor Booth asked that members are provided with a breakdown of the achieved targeted savings of CSR1. Councillor Seaton said it was important to understand that the Council have achieved the overall targeted savings but agreed to provide a breakdown of this.

4.    Councillor Boden said in paragraph 2.6 of the report (page 34 of the Agenda Pack) there is reference to uncertainties and ‘unknowns’ that may affect the Council. He asked if these have been quantified and included in the budget. Councillor Mrs Hay explained that the deficits are based on current budget with known changes and pressures on existing services and assumed income levels, including Council Tax increases. She added that the Council cannot include quantification of what is stated as unquantifiable. She confirmed that once these become known, the Medium Term Financial Plan will be updated to reflect any deficits.

5.    Councillor Booth said paragraph 4.1 of the report (page 34 of the Agenda Pack) states that ‘the Council have maintained front line services through alternative service delivery models’. He highlighted that many service areas have been cut back and asked the wording to be amended. Councillor Seaton agreed.

6.    Councillor Boden asked what the cumulative total savings are for CSR1 to the Council. Councillor Mrs Hay clarified that the report shows that when all of the CSR1 projects are delivered, the cumulative saving is estimated to be £1.802 million per  ...  view the full minutes text for item OSC29/18

To receive an update on the previous meeting’s Action Plan.

Members were provided with an update on the status of actions they had raised at previous meetings of the Committee.

Members thanked officers for the Member Briefing Note that was circulated in relation to the Contact Centre and asked for information to be provided on the Contact Centre’s call statistics.

To consider the Draft Work Programme for Overview & Scrutiny Panel 2018/19.

Members agreed the Future Work Programme 2018/19 for the Overview & Scrutiny Panel, subject to the following additions;

1.    It was agreed that the Clarion Review is moved to the meeting scheduled to take place on Monday 18 February 2019.

2.    It was agreed that the Economic Development Review Group’s findings are reported back to Overview & Scrutiny Panel at the meeting scheduled to take place on Monday 18 March 2019.

3.    It was agreed that the Council Tax Support Scheme report will be considered earlier in next year’s work programme and is included in the July 2019 meeting.